Cobra's Market View

Wealth Builder Series by FlowerGirl

Wealth Builder Series by FlowerGirl

Posted: Thu Jan 01, 2015 9:54 am

by FlowerGirl

2014 Trades and Performance:Portfolio Composition:Long and Short SP500 index/Volatility Futures80% SSO/SDS20% XIV/VXXRebalanced when entering SSO or XIV:B&H Tracker is 80/20 SSO/XIV that is rebalanced on last trading day in June and December. In Bear Market Tracker will switch to 80/20 SDS/VXX. SPY is considered in Bear Market when EMA13< EMA 168 or closing price is 13% below its recent high.Technical Setup: No details of the actual technical setup are available (to public) except that all TA is based on Hourly bars.Trading setup & Trades:

Performance:

wbs.png (22.36 KiB) Viewed 1804 times

Above is for informational purposes only. Poster takes no credit for the stellar performance of this strategy in 2014. This strategy is known to under perform B&H Tracker and suffer draw downs that are greater than the B&H Tracker.Actual trades were posted on this board throughout 2014 (with some delay...intentionally). There is no guarantee/commitment that such updates will be posted in future.Performance record is for a hypothetical portfolio which may be different from the real world (actual) performance of this strategy.

Re: Wealth Builder Series by FlowerGirl

Posted: Thu Jan 01, 2015 2:24 pm

by tsf

Thank you for sharing, and HAPPY NEW YEAR.

I have some follow-up questions, please and thanks: How do you allocate the % of your total capital between Wealth Builder Series vs. Buy & Hold?For example, if SP500 goes up 55% of the time over the very long-term, would you allocate 55% of your total capital to Buy & Hold when ema 13 is above ema 168?Would you allocate 45% of your total capital to Buy & Hold when ema 13 is below ema 168?Do you have any suggestions for beginners on how to allocate % capital between Trading vs Buy & Hold with changing market trends?

I also appreciate inputs from Cobra and other board members on how beginners may want to allocate capital between Trading vs Buy & Hold. Many thanks.

FlowerGirl wrote:2014 Trades and Performance:Portfolio Composition:Long and Short SP500 index/Volatility Futures80% SSO/SDS20% XIV/VXXRebalanced when entering SSO or XIV:B&H Tracker is 80/20 SSO/XIV that is rebalanced on last trading day in June and December. In Bear Market Tracker will switch to 80/20 SDS/VXX. SPY is considered in Bear Market when EMA13< EMA 168 or closing price is 13% below its recent high.Technical Setup: No details of the actual technical setup are available (to public) except that all TA is based on Hourly bars.Trading setup & Trades:

xiv trading.png

sso trading.png

Performance:

wbs.png

Above is for informational purposes only. Poster takes no credit for the stellar performance of this strategy in 2014. This strategy is known to under perform B&H Tracker and suffer draw downs that are greater than the B&H Tracker.Actual trades were posted on this board throughout 2014 (with some delay...intentionally). There is no guarantee/commitment that such updates will be posted in future.Performance record is for a hypothetical portfolio which may be different from the real world (actual) performance of this strategy.

Re: Wealth Builder Series by FlowerGirl

Posted: Thu Jan 01, 2015 5:59 pm

by FlowerGirl

tsf wrote:Thank you for sharing, and HAPPY NEW YEAR.I have some follow-up questions, please and thanks: How do you allocate the % of your total capital between Wealth Builder Series vs. Buy & Hold?

In this setup all trades are guided by the TA setups. B&H Tracker is just a reference point to ascertain performance of active management to passive management. [Does active management hurts or pays].What is remarkable about this setup is that its alpha (profitability) is 3x that of B&H but without any increase in Beta (volatility) relative to B&H Tracker.

"Asset allocation" is beyond the scope of this post as it requires knowledge of your investment objectives as well as risk tolerance and many more attributes (Make note of standard Deviation of this setup - not for a faint heart... )